Alocal restaurant owner is considering expanding into another rural area. the expansion project will be financed through a line of credit with city bank. the administrative costs of obtaining the line of credit are $500, and the interest payments are expected to be $1,000 per month. the new restaurant will occupy an existing building that can be rented for $2,500 per month. the incremental cash flows for the new restaurant include a. $500 administrative costs, $1,000 per month interest payments, $2,500 per month rent. b. $2,500 per month rent. c. $500 administrative costs, $2,500 per month rent. d. $1,000 per month interest payments, $2,500 per month rent.

Mauro products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. the company’s monthly fixed expense is $4,200. required: 1. solve for the company’s break-even point in unit sales using the equation method. 2. solve for the company’s break-even point in dollar sales using the equation method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.) 3. solve for the company’s break-even point in unit sales using the formula method. 4. solve for the company’s break-even point in dollar sales using the formula method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.)